Beverley Folk Festival, an event organised by a not-for-profit organisation, has been cancelled indefinitely.

Directors of the organisation have stated that the event closure is due to the loss of its “primary source of funding”. They have also stated that they are currently unable to refund advance weekend tickets that have already been purchased. Booked performers will also not receive any form of payment as the firm has “ceased to trade with immediate effect”.

In a statement released today, a festival director said: “It is with immense sadness and regret that we have to announce this year’s festival cannot go ahead. Unfortunately, we have recently discovered we have lost our primary source of funding, so we simply do not have the money to pay for the infrastructure or the performers.

“We know there will be a lot of people who are as disappointed as we are, but we hope you will understand that under the circumstances in which we find ourselves, it is not possible to run the event.

“The directors would like to thank all those who have supported Beverley Folk Festival over the years, this has been an incredibly difficult and heart-breaking decision for all involved. However, the directors acknowledge that for almost 35 years Beverley Folk Festival has brought something special to the town, which was loved and enjoyed by so many people from far and wide.”

The festival was due to take place at Beverley Racecourse in June, the sixth time it was to be held at this venue. The organisation is insolvent and has been placed in liquidation, and the directors have offered “sincere apologies” to all those owed money.

The festival was due to be held at the racecourse June 15-17, with an expected daily capacity of 2,500.